See, three years ago my tax situation suddenly changed and I found myself owing over $3000 that I didn't expect. That pretty much kicked my fiscal rearend. I cranked up the withholding amounts to make sure it didn't happen again. But it did happen again. So I cranked up the withholding even more. And it happened yet again last year, but "only" by about $1400. Withholding ratcheted up even higher last year and finally - finally! - I've crossed back into refund territory.
It's party time! Well, actually, it would be party time if I wasn't so pooped out from working two jobs to pay the stinking taxman. But it is progress!
PS - the recommended withholdings on the W-4 are full of crap. Jus' sayin'.
aw heck Inno party anyhoo!..woohoo!!!
ReplyDeleteBack in my working days, I always used married and 0 on the old W4 and never paid. They were goofy with what they wanted you to use. All the guys I worked with were getting killed at tax time. I had to actually yell at these guys to change and they finally did ... but I still could get they to put anything in their 401K.
ReplyDeleteI've been battling the same situation the past few years myself. I'm hoping I've got the withholding's right this year. Guess I ought to get around to doing the taxes to find out.
ReplyDeleteI pay a small amount every year, typically under $1K. But it PISSES ME OFF that a guy who draws nothing but Social Security, a pittance of a corporate retirement, and a slightly larger pittance of a military retirement Should have to pay anything above the recommended "withholding." Still and even, I went through the same drill as you, Inno... ratcheting up the withholding until I was just below break-even.
ReplyDeleteI never do my taxes until April. The Feds can wait for my money, thank ya.
Oh. I haven't started mine yet. The feds goofed around for so long that their changes to the code are only just now coming out. Besides, I generally have to pay something, and mebbe get a small something back, so they can wait.
ReplyDeleteI try to cut things close to the bone, so they don't get an interest-free loan. Usually, I'm pretty close to that mark.
Yeah, MAX--that interest free loan bites big time. But, don't you dare consider being a nanosecond late in filing without adding on a nice chunk of interest if you owe! We usually don't get in high gear until October. Still waiting on 2009 refund from LA because that return is " under review.". That's a big-time interest-free loan.
ReplyDeleteWTG, Inno!
Moogie: But, don't you dare consider being a nanosecond late in filing without adding on a nice chunk of interest if you owe!
ReplyDeleteNo kidding! I've often wondered why the interest thing only goes one direction. Seems to me if the govt is using your money, you should get an interest payment. But it doesn't work that way, so I try to ensure that they don't get the interest-free loan from us.
You should do what I do. As soon as you sell your heroin, store your drug money in white packaging at the bottom of the pool. The guvmint never looks for it there.
ReplyDeleteInno, I have some very good advice for you. But, I need to take it off-blog, because I know anyone that posts a graphic like that will be closely examined, and I don't want my sweet deal to get screwed because I aired it out on the worldwide comprutuh!
ReplyDeleteLook for a G-mail.